Medicare Spending Decelerates

Aug 15 2011 @ 9:53am

This won't get the headlines of the debt ceiling fight but in many ways, it's much more important to future fiscal health:

From 2000 through 2009, Medicare’s outlays climbed by an average of 9.7 percent a year. By contrast, since the beginning of 2010, Medicare spending has been rising by less than 4 percent a year. On this,  both Standard Poor’s Index Committee and the Congressional Budget Office (CBO) agree.

Why the slowdown, which could cut the debt massively in the distant future? Zeke Emmanuel believes it's the looming impact of the ACA:

The reform measures that will rein in Medicare inflation have not yet been implemented.  But, he explained, providers are “anticipating the Affordable Care Act kicking in.”  They can’t wait until the end of 2013: “They have to act today.  Everywhere I go,” Emanuel, added, “medical schools and hospitals are asking me, ‘How can we cut our costs by 10 to 15 percent?’